Previous Day Highlights

FBM KLCI closed lower due to last-minute selling pressure. The benchmark index was down 0.11% or 1.70 pts to close at 1,602.34. Gainers were seen in health care (+1.01%), property (+1.00%), and construction (+0.60%); while losers were seen in plantation (-0.53%), financial services (-0.45%), and telecommunications (-0.34%). Market breadth was positive with 565 gainers against 438 losers. Total volume stood at 2.83bn shares valued at RM2.08bn.

Major regional indices trended positive. HSI gained 0.44%, to end at 19,663.67. SHCOMP increased 0.67%, to close at 3,346.01. Nikkei 225 up 0.51%, to finish at 38,414.43. STI rose 0.63%, to close at 3,755.89.

Wall Street ended mixed as Nvidia shares rallied ahead of its quarterly results. The DJIA dropped 0.28%, to end at 43,268.94. Nasdaq rose 1.04%, to close at 18,987.47. S&P500 rose 0.40%, to finish at 5,916.98. .

News For The Day

Dutch Laady’s net profit rose 2.5% in 3QFY24

Dutch Lady’s net profit rose 2.5% YoY to RM17.2m in 3QFY23, owing to a positive correction on costs initially disallowed for tax deduction. Dutch Lady is cautiously optimistic about its outlook for the remainder of its financial year 2024, despite facing inflationary pressures and currency fluctuations. DLMI will continue to focus on optimising costs and cashflow and is implementing a fit-for-purpose organisation to increase effectiveness. – The Star

Binastra gets RM256m data centre job

Binastra Corp has accepted a letter of award worth RM256.5m from Exsim Jalil Link for mechanical and electrical fit-out works relating to a data centre in Bukit Jalil, Kuala Lumpur. The contract will entail design, construction, completion, testing and commissioning of mechanical and electrical fit-out works for Phase 1 as well as Phase 2 of the data centre. The duration for Phase 1 will take nine months to complete, while Phase 2 will take 24 months. The contract is expected to provide an additional income stream for the group over the next three financial years. - The Star

Malayan Flour Mills’ net profit jumps 96.1% in 3QFY24

Malayan Flour Mills’ net profit tumble by 70% YoY in 3QFY24, driven by higher sales volume from the flour and grain trading segment, amidst lower selling prices. The company will continue to monitor the impact of commodity prices arising from the global supply and demand dynamics and adjust selling prices accordingly and to diversify the sources of wheat, corn and soybean meal. - The Edge Market

Star Media's net profit up over 44 times in 3QFY24

The group's net profit surged 44 times YoY to RM2.5m in 3QFY24 on better performance by its radio broadcasting arm and property development and investment segment. The property development and investment business segment will continue to contribute positively to the group’s performance.- The Edge Market

TCS wins RM611.3m contract for Pan Borneo Highway project

TCS Group Holdings’ wholly-owned subsidiary, TCS Construction, has been awarded a RM611.3m contract by Sabah Public Works Department (JKR Sabah) for the construction of a new highway and road upgrades on the Pan Borneo Sabah Highway Phase 1B. This contract win has further boosted order book and earnings visibility for the coming years. - The Star

Our Thoughts

Wall Street closed mixed as overall sentiment was affected by the latest developments between Russian and Ukraine. However, Nasdaq bucked the trend predominantly boosted by Nvidia ahead of its earnings results due later today. Meanwhile, the US 10-year yield eased slightly to 4.396%. In Hong Kong, the HSI trended higher albeit modestly as the outlook was boosted by China’s pledge to ramp up more support for the city’s financial market via more listings of Chinese companies, improve market access and issue of treasury bonds. On the home front, the FBM KLCI closed in the red paring earlier gains attributed to late selling by foreign funds. Nonetheless, we remain optimistic that bargain hunting activities will emerge thus expect the index to trend between the 1,600-1,610 range today.

Source: Rakuten Research - 20 Nov 2024

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